November 2022: DIR Releases 2023 Hourly Rates for Computer Professionals, Licensed Physicians

02 Nov


Update Applicable to:
All employers of computer professionals and/or licensed physicians in California.

What happened?
On October 14, 2022, the California Department of Industrial Relations (DIR) released the new rate changes for computer software employees and licensed physicians and surgeons for 2023.

What are the details?
Every year around October, the California Department of Industrial Relations (DIR) releases new rates for the computer software employees exemption and the licensed physicians and surgeons exemption.

Last week, the DIR released the rate changes for 2023. These new rates, which take effect on January 1, 2023, are tied to the California Consumer Price Index (CCPI) for Urban Wage Earners and Clerical Workers and reflect the 7.6 percent CCPI increase.

An employee must meet certain requirements to be classified as an exempt computer professional, including (but not limited to) being:

  • Primarily engaged in work that is intellectual or creative;
  • Primarily engaged in work that requires the exercise of discretion and independent judgment;
  • Primarily engaged in certain duties, such as applying systems analysis techniques and procedures or creating or modifying computer systems or programs;
  • Highly skilled and proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, and software engineering; and
  • Paid California’s minimum rate of pay or salary is noted below.

For the computer software employees’ exemption:

  • The minimum hourly rate of pay exemption increased to $53.80 from its previous rate of $50;
  • The minimum monthly salary increased to $9,338.78 from its previous rate of $8,679.16; and
  • The minimum annual salary exemption increased to $112,065.20 from its previous rate of $104,149.81.

Remember, some computer professionals who don’t meet those requirements can still qualify as exempt under one of the other exemptions, such as the administrative or professional exemption.

Licensed physicians or surgeons primarily engaged in performing duties for which licensure is required exempt from overtime if they’re paid at least the minimum hourly rate set annually by the state. For 2023, the licensed physician and surgeon hourly exemption increased from $91.07 to $97.99.

For more information, please see the links below:

Computer Software Employees Exemption

Licensed Physicians and Surgeons Exemption

California Consumer Price Index (CCPI)

Article 1Article 2

What do employers need to do?
Employers should review the links above and adjust their employee’s exemption wages by January 1, 2023.